Russia's internet crackdown hobbles small businesses

The Kremlin's escalating internet restrictions are creating significant hurdles for Russia's small and medium-sized businesses, which rely heavily on digital communication. For entrepreneurs like Natalia Kukovinets, who runs a dogwear brand, popular messaging apps like Telegram have become essential for sales and customer interaction, especially after Meta's platforms were restricted. However, unpredictable outages and the need for VPNs disrupt communication, making it harder to track requests and process orders.

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Telegram is basically everything when it comes to client communication.

This situation is not isolated. Millions of small businesses and self-employed individuals depend on these platforms. The government's response, as seen in Moscow's mobile internet shutdowns, offers no compensation for these losses, with President Putin framing the restrictions as necessary for national security. This stance has drawn rare criticism from the business community and is viewed negatively by a majority of Russians.

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it has become harder to track incoming requests. It does not work without a VPN turned on, and notifications often do not come through.

The impact extends beyond mere inconvenience. Restaurants have reported losing online orders due to glitches, and property firms face difficulties in client communication, leading to financial losses for both businesses and their customers. While official data on the economic toll is scarce, the sheer volume of digital sales in Russia highlights the potential scale of the problem. The unpredictable nature of these crackdowns poses a significant threat to the digital economy and the livelihoods of many Russians.

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Telegram was down, so the customers started shouting. It was a reputational loss.